What changed in this filing

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Item 1. Financial Statements

2022-07-27 compared with 2022-04-27 · 101 added, 101 removed, 385 unchanged (34% of the section changed)

29 unchanged sentences

250,000 shares authorized;

37,204 and 38,481 shares issued and outstanding at April 2, 2022 and January 1, 2022, respectively

34,223 and 38,481 shares issued and outstanding at July 2, 2022 and January 1, 2022, respectively

Retained earnings

7 unchanged sentences

Three Months Ended

Six Months Ended

Cost of revenues

22 unchanged sentences

Three Months Ended

Six Months Ended

Other comprehensive loss, before tax

3 unchanged sentences

Net changes to cash flow hedges

Unrealized losses arising during the period

Reclassification for gains included in net income

Unrealized gains (losses) arising during the period

Reclassification for (gains) losses included in net income

Other comprehensive loss, before tax

9 unchanged sentences

Stockholders’

Three Months Ended April 2, 2022

Three Months Ended July 2, 2022

Income (Loss)

Balance as of April 2, 2022

Other comprehensive loss

Stock issuances, net of shares withheld for taxes

Repurchases of common stock

Stock-based compensation

Balance as of July 2, 2022

Accumulated Other

Comprehensive

Stockholders’

Three Months Ended July 3, 2021

Income (Loss)

Balance as of April 3, 2021

Other comprehensive loss

Stock issuances, net of shares withheld for taxes

Repurchases of common stock

Stock-based compensation

Balance as of July 3, 2021

Accumulated Other

Comprehensive

Stockholders’

Six Months Ended July 2, 2022

Income (Loss)

Balance as of January 1, 2022

4 unchanged sentences

Stock-based compensation

Balance as of April 2, 2022

Balance as of July 2, 2022

Accumulated Other

1 unchanged sentence

Stockholders’

Three Months Ended April 3, 2021

Six Months Ended July 3, 2021

Income (Loss)

2 unchanged sentences

Stock issuances, net of shares withheld for taxes

Repurchases of common stock

Stock-based compensation

Convertible debt activity

Balance as of April 3, 2021

Balance as of July 3, 2021

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

2 unchanged sentences

(In thousands)

Three Months Ended

Six Months Ended

Operating Activities

Adjustments to reconcile net income to cash provided by (used in) operating activities of continuing operations:

Adjustments to reconcile net income to cash provided by operating activities of continuing operations:

Income from discontinued operations, net of income taxes

13 unchanged sentences

Other non-current liabilities

Net cash provided by (used in) operating activities of continuing operations

Net cash provided by operating activities of continuing operations

Investing Activities

9 unchanged sentences

Payment of taxes withheld for vested stock awards

Proceeds from the issuance of common stock

Net cash used in financing activities of continuing operations

7 unchanged sentences

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

Silicon Laboratories Inc.

Notes to Condensed Consolidated Financial Statements

Significant Accounting Policies

Basis of Presentation and Principles of Consolidation

The Condensed Consolidated Financial Statements included herein are unaudited;

however, they contain all normal recurring accruals and adjustments which, in the opinion of management, are necessary to present fairly the condensed consolidated financial position of Silicon Laboratories Inc.

and its subsidiaries (collectively, the “Company”) at April 2, 2022 and January 1, 2022, the condensed consolidated results of its operations for the three months ended April 2, 2022 and April 3, 2021, the Condensed Consolidated Statements of Comprehensive Income for the three months ended April 2, 2022 and April 3, 2021, the Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three months ended April 2, 2022 and April 3, 2021, and the Condensed Consolidated Statements of Cash Flows for the three months ended April 2, 2022 and April 3, 2021.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S.

generally accepted accounting principles (U.S.

GAAP) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X.

The information included herein contains all normal recurring accruals and adjustments which, in the opinion of management, are necessary to present fairly Silicon Laboratories Inc.’s (the “Company”) financial position, results of its operations, comprehensive income, stockholders’ equity and cash flows.

The Condensed Consolidated Balance Sheet as of January 1, 2022 was derived from the Company’s audited Consolidated Financial Statements.

All intercompany balances and transactions have been eliminated in consolidation.

The condensed consolidated results of operations for the three months ended April 2, 2022 are not necessarily indicative of the results to be expected for the full year.

The accompanying unaudited Condensed Consolidated Financial Statements do not include certain footnotes and financial presentations normally required under U.S.

generally accepted accounting principles (GAAP).

Therefore, these Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and notes thereto for the year ended January 1, 2022, included in the Company’s Form 10-K filed with the Securities and Exchange Commission (SEC) on February 2, 2022.

The condensed consolidated results of operations for the three and six months ended July 2, 2022 are not necessarily indicative of the results to be expected for the full year.

These Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and notes thereto for the year ended January 1, 2022, included in the Company’s Form 10-K filed with the Securities and Exchange Commission (SEC) on February 2, 2022.

The Company prepares financial statements on a 52 - or 53 -week fiscal year that ends on the Saturday closest to December 31.

6 unchanged sentences

Actual results could differ from those estimates, and such differences could be material to the financial statements.

The Company periodically reviews the assumptions used in its financial statement estimates.

Revenue Recognition

14 unchanged sentences

Payments are typically due within 30 days of invoicing and do not include a significant financing component.

Silicon Laboratories Inc.

Notes to Condensed Consolidated Financial Statements (Continued)

Significant Accounting Policies (Continued)

Adoption of New Accounting Standard

10 unchanged sentences

The primary impact of the Company’s adoption of ASU 2020-06 was to increase the carrying value of its convertible debt, representing the unamortized debt discount, and reduce deferred tax liabilities related to convertible debt.

The adoption reduced reported interest expense recorded in connection with convertible debt, which increased basic earnings per share and diluted earnings per share by $ 0.11 and $ 0.10 , respectively, for the three months ended April 2, 2022.

The adoption reduced reported interest expense recorded in connection with convertible debt, which increased basic earnings per share and diluted earnings per share by $ 0.11 and $ 0.11 , respectively, for the three months ended July 2, 2022, and by $ 0.22 and $ 0.21 , respectively, for the six months ended July 2, 2022.

Discontinued Operations

On April 22, 2021, the Company entered into an Asset Purchase Agreement to sell its infrastructure and automotive business to Skyworks Solutions, Inc.

On July 26, 2021, the Company sold its infrastructure and automotive business to Skyworks Solutions, Inc.

for $ 2.75 billion in cash.

The transaction closed on July 26, 2021.

The financial results of the infrastructure and automotive business, which are readily distinguishable from other components of the Company, have been presented as discontinued operations in the Condensed Consolidated Financial Statements because the sale represented a strategic shift for the Company.

1 unchanged sentence

Three Months Ended

Six Months Ended

Costs of revenues

4 unchanged sentences

Income from discontinued operations per share:

Silicon Laboratories Inc.

Notes to Condensed Consolidated Financial Statements (Continued)

Discontinued Operations (Continued)

Continuing Involvement

In connection with the closing of the sale, the Company entered into certain ancillary agreements with Skyworks, including a Transition Services Agreement (“TSA”).

Through the TSA, the Company has subleased certain premises to Skyworks and will provide or provides various temporary support services for three to eighteen months , depending on the service provided.

Although the services provided under the TSA will generate continuing cash flows between the Company and Skyworks for the duration of the TSA, the amounts are not expected to be material to the ongoing operations of either entity.

Through the TSA, the Company has subleased certain premises to Skyworks and will provide or provides various temporary support services for three to eighteen months after the close of the transaction, depending on the service provided.

Although the services provided under the TSA will generate continuing cash flows between the Company and Skyworks for the duration of the TSA, the amounts have not been nor are expected to be material to the ongoing operations of either entity.

In addition, the Company has no contractual ability through the TSA or any other agreement to significantly influence the operating or financial policies of Skyworks.

Fees received by the Company under the TSA were approximately $ 1.9 million for the three months ended April 2, 2022.

Fees received by the Company under the TSA were approximately $ 3.5 million for the six months ended July 2, 2022.

Earnings (Loss) Per Share

1 unchanged sentence

Three Months Ended

Six Months Ended

Income (loss) from continuing operations

5 unchanged sentences

The Company has irrevocably elected to settle the principal amount of its convertible senior notes in cash and intends to settle any excess value in shares in the event of a conversion.

For the three months ended April 2, 2022 and April 3, 2021, approximately 1.0 million and 1.1 million shares, respectively, were included in the denominator for the calculation of diluted earnings per share.

For the three months ended July 2, 2022 and July 3, 2021 and the six months ended July 2, 2022 and July 3, 2021, approximately 0.6 million, 0.5 million, 0.8 million and 0.8 million shares, respectively, were included in the denominator for the calculation of diluted earnings per share.

See Note 7, Debt , to the Condensed Consolidated Financial Statements for additional information.

5 unchanged sentences

Level 3 – Inputs are unobservable for the asset or liability and are developed based on the best information available in the circumstances, which might include the Company’s own data.

Silicon Laboratories Inc.

Notes to Condensed Consolidated Financial Statements (Continued)

Fair Value of Financial Instruments (Continued)

The following summarizes the valuation of the Company’s financial instruments (in thousands).

1 unchanged sentence

Fair Value Measurements

at April 2, 2022 Using

at July 2, 2022 Using

Quoted Prices in

4 unchanged sentences

Money market funds

Government debt securities

Corporate debt securities

4 unchanged sentences

Total short-term investments

Other assets, net:

Auction rate securities

Fair Value Measurements

15 unchanged sentences

Auction rate securities

Silicon Laboratories Inc.

Notes to Condensed Consolidated Financial Statements (Continued)

Fair Value of Financial Instruments (Continued)

Valuation methodology

9 unchanged sentences

The Company’s investments are reported at fair value, with unrealized gains and losses, net of tax, recorded as a component of accumulated other comprehensive loss in the Consolidated Balance Sheet.

The following summarizes the contractual underlying maturities of the Company’s available-for-sale investments at April 2, 2022 (in thousands):

The following summarizes the contractual underlying maturities of the Company’s available-for-sale investments at July 2, 2022 (in thousands):

Due in one year or less

5 unchanged sentences

12 Months or Greater

As of April 2, 2022

As of July 2, 2022

Government debt securities

Corporate debt securities

Auction rate securities

Less Than 12 Months

4 unchanged sentences

Auction rate securities

The gross unrealized losses as of April 2, 2022 and January 1, 2022 were due primarily to changes in market interest rates and the illiquidity of the Company’s auction-rate securities.

The Company’s auction-rate securities have been illiquid since 2008 when auctions for the securities failed because sell orders exceeded buy orders.

These securities have a contractual maturity date of 2046.

The Company is unable to predict if these funds will become available before their maturity date.

Silicon Laboratories Inc.

Notes to Condensed Consolidated Financial Statements (Continued)

The gross unrealized losses as of July 2, 2022 were due primarily to changes in market interest rates.

The gross unrealized losses as of January 1, 2022 were due primarily to changes in market interest rates and the illiquidity of the Company’s auction-rate securities.

Fair Value of Financial Instruments (Continued)

The Company records an allowance for credit loss when a decline in investment market value is due to credit-related factors.

When evaluating an investment for impairment, the Company reviews factors such as the severity of the impairment, changes in underlying credit ratings, forecasted recovery, the Company’s intent to sell or the likelihood that it would be required to sell the investment before its anticipated recovery in market value and the probability that the scheduled cash payments will continue to be made.

As of April 2, 2022, there were no material declines in the market value of available-for-sale investments due to credit-related factors.

At April 2, 2022 and January 1, 2022, there were no material unrealized gains associated with the Company’s available-for-sale investments.

As of July 2, 2022, there were no material declines in the market value of available-for-sale investments due to credit-related factors.

At July 2, 2022 and January 1, 2022, there were no material unrealized gains associated with the Company’s available-for-sale investments.

Level 3 fair value measurements

The following summarizes quantitative information about Level 3 fair value measurements.

Auction rate securities

Fair Value at

April 2, 2022

Valuation Technique

Unobservable Input

Weighted Average

Discounted cash flow

Estimated yield

Expected holding period

Estimated discount rate

Significant changes in any of the unobservable inputs used in the fair value measurement of auction rate securities in isolation could result in a significantly lower or higher fair value measurement.

An increase in expected yield would result in a higher fair value measurement, whereas an increase in expected holding period or estimated discount rate would result in a lower fair value measurement.

Generally, a change in the assumptions used for expected holding period is accompanied by a directionally similar change in the assumptions used for estimated yield and discount rate.

The following summarizes the activity in Level 3 financial instruments for the three months ended April 2, 2022 (in thousands):

The following summarizes the activity in Level 3 financial instruments for the three and six months ended July 2, 2022 (in thousands):

Auction Rate Securities

Beginning balance

Loss included in other comprehensive loss

Balance at April 2, 2022

Loss recognized in earnings

Gain included in other comprehensive loss

Balance at July 2, 2022

(1) On May 31, 2022, the Company sold its prior remaining holding of auction-rate securities for $ 5.7 million.

Fair values of other financial instruments

2 unchanged sentences

The notes are traded in less active markets and are therefore classified as a Level 2 fair value measurement.

As of April 2, 2022 and January 1, 2022, the fair value of the notes was $ 728.2 million and $ 944.3 million, respectively.

As of July 2, 2022 and January 1, 2022, the fair value of the notes was $ 671.0 million and $ 944.3 million, respectively.

The Company’s other financial instruments, including cash, accounts receivable and accounts payable, are recorded at amounts that approximate their fair values due to their short maturities.

Silicon Laboratories Inc.

Notes to Condensed Consolidated Financial Statements (Continued)

Derivative Financial Instruments

4 unchanged sentences

Cash flows from derivatives are classified according to the nature of the cash receipt or payment in the Consolidated Statement of Cash Flows.

Derivative Financial Instruments (Continued)

Cash Flow Hedges

1 unchanged sentence

The Company uses foreign currency forward contracts to reduce the earnings impact that exchange rate fluctuations have on operating expenses denominated in currencies other than the U.S.

Changes in the fair value of the contracts are recorded in accumulated other comprehensive income (loss) in the Consolidated Balance Sheet and subsequently reclassified into earnings in the period during which the hedged transaction is recognized.

Changes in the fair value of the contracts are recorded in accumulated other comprehensive loss in the Consolidated Balance Sheet and subsequently reclassified into earnings in the period during which the hedged transaction is recognized.

The reclassified amount is reported in the same financial statement line item as the hedged item.

If the foreign currency forward contracts are terminated or can no longer qualify as hedging instruments prior to maturity, the fair value of the contracts recorded in accumulated other comprehensive income (loss) may be recognized in the Consolidated Statement of Income based on an assessment of the contracts at the time of termination.

The Company has entered into foreign currency forward contracts for a portion of its forecasted operating expenses denominated in the Euro, Norwegian Krone, Indian Rupee and Hungarian Forint.

As of April 2, 2022, the contracts had maturities of one to nine months and an aggregate notional value of $ 47.6 million.

If the foreign currency forward contracts are terminated or can no longer qualify as hedging instruments prior to maturity, the fair value of the contracts recorded in accumulated other comprehensive loss may be recognized in the Consolidated Statement of Income based on an assessment of the contracts at the time of termination.

The Company has entered into foreign currency forward contracts for a portion of its forecasted operating expenses denominated in the Euro, Hungarian Forint, Indian Rupee and Norwegian Krone.

As of July 2, 2022, the contracts had maturities of one to six months and an aggregate notional value of $ 32.0 million.

Gains and losses expected to be reclassified into earnings in the next twelve months were not material.

The fair value of the contracts, contract gains or losses recognized in other comprehensive income (loss) and amounts reclassified from accumulated other comprehensive income into earnings were not material for any of the periods presented.

The fair value of the contracts, contract gains or losses recognized in other comprehensive loss and amounts reclassified from accumulated other comprehensive loss into earnings were not material for any of the periods presented.

Non-designated Hedges

4 unchanged sentences

The Company does not apply hedge accounting to these foreign currency forward contracts.

As of April 2, 2022, the Company held two foreign currency forward contracts denominated in Indian Rupees with an aggregate notional value of $ 9.1 million and two foreign currency forward contracts denominated in Hungarian Forint with an aggregate notional value of $ 3.8 million.

As of July 2, 2022, the Company held foreign currency forward contracts denominated in Hungarian Forint and Indian Rupees with an aggregate notional value of $ 6.3 million.

The fair value of the foreign contracts and contract gains and losses recognized in income were not material for any of the periods presented.

3 unchanged sentences

Finished goods

Silicon Laboratories Inc.

Notes to Condensed Consolidated Financial Statements (Continued)

The Company leases a portion of its headquarter facilities to other tenants.

Lease income from operating leases was $ 1.9 million and $ 0.8 million during the three months ended April 2, 2022 and April 3, 2021, respectively.

Lease income from operating leases was $ 3.7 million and $ 1.6 million during the six months ended July 2, 2022 and July 3, 2021, respectively.

0.625 % Convertible Senior Notes

13 unchanged sentences

The Company intends to settle any excess value in shares in the event of a conversion.

The Sales Price Trigger condition was met on January 1, 2022, and as a result, holders had the option to convert their 2025 Notes at any time during the calendar quarter ended March 31, 2022.

The Sales Price Trigger condition was not met during the three months ended April 2, 2022.

Accordingly, the net carrying amount of the 2025 Notes was reclassified into non-current liabilities.

The principal balance of the 2025 Notes was separated into liability and equity components, and recorded initially at fair value.

The 2025 Notes were classified as current liabilities at January 1, 2022 due to the Sales Price Trigger condition being met on January 1, 2022.

The Sales Price Trigger condition has not been met during the six months ended July 2, 2022, therefore the net carrying amount of the 2025 Notes is now classified as a non-current liability.

The principal balance of the 2025 Notes was initially separated into liability and equity components, and recorded at fair value.

The excess of the principal amount of the liability component over its carrying amount represented the debt discount, which was amortized to interest expense over the term of the 2025 Notes using the effective interest method.

3 unchanged sentences

Upon the adoption of ASU 2020-06, the equity component was reclassified to liabilities and remeasured to reflect cumulative amortization since the issuance of the 2025 Notes.

Silicon Laboratories Inc.

Notes to Condensed Consolidated Financial Statements (Continued)

The carrying amount of the 2025 Notes consisted of the following (in thousands):

5 unchanged sentences

Net carrying amount

Debt (Continued)

The liability component of the 2025 Notes is recorded in convertible debt on the Consolidated Balance Sheet.

1 unchanged sentence

The effective interest rate for the liability component was 5.336 %.

As of April 2, 2022, the remaining period over which the debt issuance costs will be amortized was 3.2 years.

As of July 2, 2022, the remaining period over which the debt issuance costs will be amortized was 3.0 years.

Interest expense related to the notes was comprised of the following (in thousands):

Three Months Ended

Six Months Ended

Contractual interest expense

9 unchanged sentences

The credit facility contains various conditions, covenants and representations with which the Company must be in compliance in order to borrow funds and to avoid an event of default, including financial covenants that the Company must maintain a net leverage ratio (funded indebtedness/EBITDA) of no more than 4.25 to 1, a secured leverage ratio of no more than 3.50 to 1, and a minimum interest coverage ratio (EBITDA/interest payments) of no less than 2.50 to 1.

As of April 2, 2022, the Company was in compliance with all covenants of the credit facility.

As of July 2, 2022, the Company was in compliance with all covenants of the credit facility.

The Company’s obligations under the credit facility are guaranteed by the Guarantors and are secured by a security interest in substantially all assets of the Company and the Guarantors.

As of April 2, 2022, no amounts were outstanding on the credit facility.

Silicon Laboratories Inc.

Notes to Condensed Consolidated Financial Statements (Continued)

As of July 2, 2022, no amounts were outstanding on the credit facility.

Commitments and Contingencies

5 unchanged sentences

Three Months Ended

Six Months Ended

Industrial & Commercial

1 unchanged sentence

These factors impact the timing and uncertainty of revenues and cash flows.

During the three months ended April 2, 2022 and April 3, 2021, the Company recognized revenue of $ 21.5 million and $ 6.8 million, respectively, from performance obligations that were satisfied in previous reporting periods.

The Company periodically reviews the assumptions used to estimate consideration it will be entitled to receive from customers.

In the second quarter of fiscal 2022, the Company adjusted certain assumptions used to estimate the constraint on variable consideration, which increased revenue by $ 11.4 million and $ 5.0 million in the three and six months ended July 2, 2022, respectively.

During the three months ended July 2, 2022 and July 3, 2021 and the six months ended July 2, 2022 and July 3, 2021, the Company recognized revenue of $ 36.5 million, $ 8.4 million, $ 32.0 million and $ 9.3 million, respectively, from performance obligations that were satisfied in previous reporting periods.

The following disaggregates the Company's revenue by sales channel (in thousands):

Three Months Ended

Six Months Ended

Direct customers

1 unchanged sentence

Stock-based compensation costs are based on the fair values on the date of grant for stock awards and stock options and on the date of enrollment for the employee stock purchase plans.

The fair values of stock awards (such as restricted stock awards (RSUs), performance stock units (PSUs) and restricted stock awards (RSAs)) are estimated based on their intrinsic values.

The fair values of stock awards (such as restricted stock units (RSUs), performance stock units (PSUs) and restricted stock awards (RSAs)) are estimated based on their intrinsic values.

The fair values of market stock awards (MSUs) are estimated using a Monte Carlo simulation.

The fair values of stock options and employee stock purchase plans are estimated using the Black-Scholes option-pricing model.

Silicon Laboratories Inc.

Notes to Condensed Consolidated Financial Statements (Continued)

The following table presents details of stock-based compensation costs recognized in the Condensed Consolidated Statements of Income (in thousands):

Three Months Ended

Six Months Ended

Cost of revenues

4 unchanged sentences

Share-based compensation – discontinued operations, net

The Company had approximately $ 87.3 million of total unrecognized compensation cost related to equity grants as of April 2, 2022 that is expected to be recognized over a weighted-average period of approximately 2.3 years.

The Company had approximately $ 130.4 million of total unrecognized compensation cost related to equity grants as of July 2, 2022 that is expected to be recognized over a weighted-average period of approximately 2.4 years.

There were no significant stock-based compensation costs capitalized into assets in any of the periods presented.

Provision for income taxes includes both domestic and foreign income taxes at the applicable tax rates adjusted for non-deductible expenses, research and development tax credits and other permanent differences.

Income tax expense was $ 11.7 million and $ 2.0 million for the three months ended April 2, 2022 and April 3, 2021, resulting in effective tax rates of 33.8 % and ( 8.6 )%, respectively.

The increase in the effective tax rate for the three months ended April 2, 2022 is primarily due to the application of ASU 2019-12, Simplifying the Accounting for Income Taxes, to the three months ended April 3, 2021 and the required adoption of new U.S.

tax rules regarding expensing of research and experimental costs in the period ended April 2, 2022.

Income tax expense was $ 11.0 million and $ 1.2 million for the three months ended July 2, 2022 and July 3, 2021, resulting in effective tax rates of 33.2 % and ( 6.7 )%, respectively.

Income tax expense was $ 22.7 million and $ 3.2 million for the six months ended July 2, 2022 and July 3, 2021, resulting in effective tax rates of 33.5 % and ( 7.8 )%, respectively.

The increase in the effective tax rate for the three and six months ended July 2, 2022 was primarily due to the application of FASB ASU 2019-12, Simplifying the Accounting for Income Taxes, to the three and six months ended July 3, 2021 and the required adoption of new U.S.

tax rules regarding expensing of research and experimental costs in the current fiscal year.

Under ASU 2019-12, the income tax benefit of a loss from continuing operations should be recognized in discontinued operations if the Company would be unable to benefit from the loss without considering the income from discontinued operations.

As such, tax benefits associated with losses incurred for the period ended April 3, 2021 were recognized in discontinued operations.

As such, tax benefits associated with losses incurred for the three and six months ended July 3, 2021 were recognized in discontinued operations.

The Tax Cuts and Jobs Act (the “Act”) was enacted on December 22, 2017.

2 unchanged sentences

Uncertain Tax Positions

As of April 2, 2022, the Company had gross unrecognized tax benefits, inclusive of interest, of $ 4.1 million, all of which would affect the effective tax rate if recognized.

During the three months ended April 2, 2022, the Company did not release any unrecognized tax benefits.

As of July 2, 2022, the Company had gross unrecognized tax benefits, inclusive of interest, of $ 4.3 million, all of which would affect the effective tax rate if recognized.

During the six months ended July 2, 2022, the Company did not release any unrecognized tax benefits.

The Company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes.

These amounts were not material for any of the periods presented.

Silicon Laboratories Inc.

Notes to Condensed Consolidated Financial Statements (Continued)

Following the completion of the Norwegian Tax Administration (“NTA”) examination of the Company’s Norwegian subsidiary for income tax matters relating to fiscal years 2013 - 2016, the Company received an assessment from the NTA in December 2017 concerning an adjustment to its 2013 taxable income related to the pricing of an intercompany transaction.

9 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements